Cardano (ADA) Keeps Moving Lower, Next Support At $1.15

0
229


Cardano keeps moving lower while crypto markets remain under pressure at the start of the week. Cardano has been under significant pressure since mid-November, when it managed to settle below the $2.00 level.

The recent performance of the crypto markets put material pressure on ADA, and it looks that there is an additional risk of a sell-off. Bitcoin‘s recent attempt to settle back above the $50,000 level yielded no results, while Ethereum remains stuck in the key support area at $3,900 – $4,000. In case the main coins start to move lower, the whole crypto market will find itself under pressure, which will be bearish for Cardano.

Weekly Chart Technical Analysis

On the weekly chart, it is clear that ADA managed to gain significant downside momentum after it managed to settle below the $2.00 level. ADA has already managed to settle below the 20 EMA at $1.79 and the 50 EMA at $1.51, and it is currently trying to settle below the support level at $1.30.

In case ADA manages to settle below $1.30, it will head towards the next support level at $1.15. RSI remains in the moderate territory, and there is plenty of room to gain additional downside momentum in case the right catalysts emerge. A move below the support at $1.15 will push ADA towards the next significant support level which is located at $1.00. This support level has been tested many times in the first half of this year, and I’d expect that trading volume should pick up in case ADA gets to the test of this level.

On the upside, the nearest significant resistance level for ADA is located at the 50 EMA at $1.51. A move above the 50 EMA will push ADA towards the resistance at $1.65. If ADA gets above this level, it will head towards the 20 EMA at $1.79.

H4 Chart Technical Analysis

Taking a look at the H4 chart, we can see that all recent attempts to rebound were met with strong selling. Importantly, each attempt to rebound was stopped at lower levels, which highlights the strength of the current downside trend.

I’d also note that recent attempts to rebound were stopped near the 50 EMA on the H4 chart. At this point, it looks that ADA has a good chance to continue its downside trend after another unsuccessful attempt to gain upside momentum.

For a look at all of today’s economic events, check out our economic calendar.

This article was originally posted on FX Empire

More From FXEMPIRE:



Source link

LEAVE A REPLY

Please enter your comment!
Please enter your name here